Business principles mid term
The Global Entrepreneurship Monitor (GEM) shows that people living in high-income countries tend to be much more willing to start their own businesses than people living low-income countries.
False
The amount of input divided by the amount of output equals productivity.
False
The difference between a firm's revenue and its cost of goods sold is its accounts receivable.
False
The most common type of corporation is an S corporation.
False
The value of all natural resources tends to rise with low demand, high supply, or both.
False
In economics, the _____________ illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue.
Laffer Curve
Expenses such as insurance and advertising that have been cleared before they are due are known as prepaid expenses.
True
In the context of consumerism, smart businesses view customer complaints as an opportunity to create better products and stronger relationships.
True
In the context of franchises, the term accounts receivable refers to money owed to a parent company by franchisees who bought its goods on credit.
True
In the context of international trade, often countries with the highest trade barriers have the least competition.
True
In the context of small businesses and the economy of a country, entrepreneurship rates are significantly lower in countries where it is hard to get fired.
True
In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.
True
In the context of the barriers to international trade, the infrastructural differences between two countries fall into the category of economic differences.
True
One of the disadvantages of general partnerships is the lack of continuity.
True
Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management.
True
Studies cited in The Wall Street Journal's Career Journal suggest that during face-to-face communication, 38% of meaning comes from tone of voice.
True
Sustainable development means weaving environmentalism throughout the business decision-making process.
True
The central banking system of the United States is the Federal Reserve.
True
The consumer market basket of goods and services, in which the consumer price index (CPI) measures the change in weighted-average price over time, is created by the U.S. Bureau of Labor Statistics.
True
The most basic form of a partnership is known as a general partnership.
True
In the accounting equation, assets are equal to liabilities minus the owners' equity.
False
In the context of competitive advantage, the value of the first-best choice represents the opportunity cost of producing a second product.
False
In the context of global trade, the exchange rate can directly measure global commerce.
False
In the context of monetary policy, when the Fed reduces the discount rate, banks will have to obtain funds at a higher cost.
False
In the context of monetary policy, when the economy contracts, the Fed typically decreases the money supply.
False
In the context of self-reliance, when things go well, people with an internal locus of control feel that the actions of other people have led to their success.
False
In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a D-Corp.
False
Reserve requirement is a rule of the Fed which requires that all of its member banks hold funds which are more than the stated percentage of the deposits held by their customers.
False
Speed-to-market is the rate at which a company's competitors copy its product innovations.
False
Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.
False
Common stock is a key owners' equity account for corporations.
True
Digital natives only spend when a business offers them value.
True
A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.
False
A social audit is a systematic evaluation of the positive and negative views of the public about a business firm.
False
An ethical dilemma involves clear misconduct at the workplace.
False
Based on statistics from the U.S. Small Business Administration (SBA), small businesses account for 78% of all private sector employees.
False
Contingent expenses are costs that a firm incurs in the regular functioning of its business.
False
Corporate philanthropy includes all business donations to nonprofit groups except employee time.
False
Despite the growth rates in many high-population countries being weak, most of these nations remain ahead of the United States in terms of development and prosperity.
False
Economists declare an official recession when gross domestic product decreases for six consecutive quarters.
False
Ideally, the opening of your business presentation will summarize your key points.
False
If an email is intended for a recipient who is likely to feel negative about it, you should end the email on a positive note.
False
Which of the following statements is true of organizational barriers to communication?
They are hard to change
A benefit of using active voice in business communication is accountability.
True
A corporation can be a partner in a partnership.
True
According to research from the Ethics Resource Center (ERC), organizational culture is most influential in shaping the ethical conduct of individual employees.
True
Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.
True
Fabotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.
acquisition
The Federal Trade Commission:
actively promotes fair competitive practices
Diana has to give a presentation on air pollution and its effects at a conference. She begins the presentation by asking the conference participants to imagine themselves carpooling to work instead of using their individual vehicles. This small exercise helps the participants to relate to the topic at hand. In the given scenario, Diana uses _____ to open her presentation.
audience involvement
